How HR Continues To Evolve, Technologically and Politically

Changes in human resources are driven by a number of overlapping factors, including the demographics of both the workplace and surrounding society; political climate and legislation coming out of it; and the development of new technology.

The rise of tech startups have created a lot of change in business communities and shifted the expectations of employees. Add breakthroughs in cloud services and management software, and authentication into the mix, and it’s easy to see how the tech boom has had a major effect on the procedures and culture of HR.

Hiring and Interview

Finding job seekers is getting easier and easier. On the other hand, as easy as job sites like Indeed and social networks like LinkedIn have made posting ads, they’ve also allowed a larger number of job seekers to respond.

Recruiters and hiring managers must deal with a much greater volume of applicants if they choose to make use of internet job postings. The benefit is that it’s easier to find the right candidate. LinkedIn and resume upload sites have made it especially easy for savvy HR professionals to target the skills they’re looking for and search for candidates more intentionally.

On the interview side, things are changing too. Skype and other video and voice-over IP apps are making remote interviews a more robust and common process. Being able to interview over long distances is exposing recruiters to talent from far-flung places. 43 percent of Americans say they spend at least some time working remotely, according to The New York Times. Remote work is changing office environments, and it’s changing the way companies hire, giving them access to employees hundreds or thousands of miles away.

Company Culture

The hiring process is closely related to company culture, but it’s an idea that goes far beyond the initial hire.

This is where the tech startup world has made a huge influence. “Company culture” has almost achieved buzzword status in job ads. Both prospective job seekers and employers are putting a heavy emphasis on “fitting in” with the company culture.

This has come with advantages and disadvantages. Tech companies in particular have shown how “culture” can be taken way too far. There have been a number of high-profile cases where culture has been used to justify abuse, inaction, or discrimination.

Company culture is a powerful and popular tool to ensure that businesses and employees truly make the most of their personnel. Every work environment is different, and hiring an employee with the right skills but the wrong demeanor can be more damaging than hiring someone who needs extra training.

Contracts and Consent

One of the biggest developments in recent years has been the ability to handle contracts, compliance, performance reviews, consent forms, and anything else that people need to sign digitally. HR departments have been leveraging digital signatures to streamline and more effectively track important documents.

Paperwork that can be signed electronically can be carefully controlled and tracked. A performance review can be signed in order, first by the employee, then by their manager, and added to their digital record without any printing, scanning, or physical transportation. The process becomes shorter and easier to track.

Timestamps recorded on electronic signatures are more accurate, and the digitizing process is better for privacy and compliance because control is kept of the document at all times. It’s easy to track who has access to it. Signing something electronically may not feel very safe, but electronic signatures are built of digital signature technology which provides encryption and verification, making the whole process very secure.

Communications Technology

Some companies are choosing to adopt high-tech communications technology within their workplaces as a way to improve efficiency of both employees and HR processes.

Chat applications are one way that companies improve communication, letting employees interact with each other and their managers in real time to discuss topics or pose questions that they wouldn’t ordinarily interrupt one another with.

Another high-tech communications solution comes with digital signage that HR can leverage to cut down on emails, poster printing, and newsletter composition. Announcements of events, important legal updates or performance metrics can instead be simultaneously displayed across a number of devices. That way, employees have information available at a glance without having to open a distracting email whenever there’s a company announcement.

Safety and Compliance

Workplace safety has changed a lot over the years. From the days of steelworkers clambering unassisted on top of skyscrapers and employees handling asbestos, the law and cultural attitudes about safety have made dramatic turns. So too is it with liability surrounding legal rights of employees, such as overtime laws and “theft of employee time”.

One of the biggest changes has been the uptick in retroactive legal action against companies that engaged in unsafe and unlawful practices. Though HR teams were always tasked with compliance and liability limitation, as lawsuits become more prevalent and potentially damaging, Human Resource’s role in protecting the company, and by proxy the company’s employees, has been magnified in recent years.

HR departments work tirelessly to create inclusive, safe workspaces that don’t discriminate or place employees in unsafe situations without a reasonable notice and acceptance of risk. Digital tools are making this process easier and will continue to influence the shape of human resources as we discover new ways to track, authenticate, and communicate.

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Welcome to reality: It’s not what you think

Authored by Kate Cohen, Manager, Deloitte Consulting LLP, and Michael Gretczko, Principal and National Service Line Leader, Human Capital Platform & Innovation, Deloitte Consulting LLP

This article details how virtual reality can broaden experiences and open minds in the HR organization of the future.

https://www2.deloitte.com/content/dam/Deloitte/us/Documents/human-capital/us-cons-hc-welcome-to-virtual-reality.pdf

4 Effective Ways to Cut the Costs of Running an Online Business

Many people nowadays decide to break the pattern of the usual company-bound jobs and start a business online. Running an online business can have great benefits for an individual in both a personal and a professional sense. Having an online business is a lot cheaper than starting an enterprise in general.

However, it is not free of charge. Sometimes people make mistakes at the very beginning that are difficult to resolve over time, for instance over-estimating profits or overlooking expenses. That is why you should try to run your business as effectively as possible and be knowledgeable of the ways to help you cut down your costs and make your business really flourish, and we are here to provide you with some.

  1. Lower your office costs.

If you decide to run an online business – there are usually two possible ways to do it. The first one is working from home, and the second one (if it is a business of a larger scale in question) is working in an office. If you are doing your job from the commodity of your own home, you will save significant amounts of money on utilities, insurance and taxes.

If your business, on the other hand, demands having some employees rather than working by yourself, you will most probably need to rent a space and those might be the biggest expenses you will encounter.

In that case, always look for the lowest lease prices in the least expensive neighborhoods, and have in mind that an attractive location doesn’t play a big role for you. Be practical and efficient instead of opting for an enchanting space in a pricey area.

  1. Decrease the advertising costs

Numerous studies have shown that small businesses usually spend 5% of their total revenue for advertising purposes. The figures can be even higher for those who are just starting out and need to think about conquering the market. That’s a whole lot if you have just started and still can’t guarantee how high your profits will be.

Luckily, you don’t have to spend a fortune on advertising as there are many other ways to make it work by simply making a Facebook page, tweeting about your business, creating an email newsletter, or employing cold calling techniques and asking for referrals.

  1. Go for cloud computing

For most online businesses, especially for startups, cloud computing is the most effective way to cut down capital costs as well as IT service related expenses. Cloud computing eliminates the requirement to buy and/or maintain expensive servers and decreases the cost of software updates.

Using the cloud enables you to have all-time access to all of the latest business application versions and gives you an opportunity to boost your bandwidth. If you decide on implementing this system, your provider will handle your data recovery issues and thus you won’t need to pay an expensive IT technician to do that.

  1. Learn how to prioritise

As a businessperson, you probably have a lot on your shoulders. That is why you can’t afford to lose any of your valuable time. The best way to achieve that is to make the best of your time by directing your activities and prioritizing.

It all comes down to good time management. If you set your goals straight and track your daily activities (and the ones of your employees, as well), this will streamline your work greatly and reduce stress, which will enable you to focus more on what really matters – making profit.

 
To conclude, running an online business opens doors to many great opportunities but inevitably brings a lot of risks, too. However, if you follow these steps and  your time and money right, you will reap the benefits in no time!

10 Simple Steps to Improve Candidate Experience?

Improve-Candidate-Experience-steps

Improving candidate experience is a must if you want to win in a war for talent. The current job market is candidate driven, which means you don’t pick talent anymore. Talent picks you. That’s why it is absolutely necessary to start improving candidate experience right now.

Read on and learn how to attract and recruit top talent in 10 simple steps!

The recruiting game has changed

Candidate experience is more than just another passing HR trend. The way we recruit has changed. Current job market is candidate driven. That means you don’t pick talent anymore. Talent picks you, and they do it based on their candidate experience.That’s why it is absolutely necessary for your company to ace candidate experience.

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Candidate experience definition

Candidate experience” is current, past and potential future candidates’ overall perception of your company’s recruiting process.

It is the product of candidates’ feelings, behaviours and attitudes they experience during the whole recruiting process, from sourcing and screening to interviewing, hiring and finally onboarding.

Steps to improve candidate experience

1. Write a clear job description

A recent Talent Board report found that job descriptions are the most important job related content. Write a clear and accurate explanation of the job and responsibilities, salary range, perks and benefits and company values.

Pro Tip: Writing a job description that attracts candidates is the very first step in finding the right candidate. To help you save time, we have created free most common job descriptions templates and samples, ready to use and post to multiple job boards with just one click.

2. Be transparent about your recruiting process

Setting expectations about the recruitment process is very important in delivering a positive candidate experience. According to research, 83% of candidates say it would greatly improve
their overall experience if employers could set expectations about the recruiting process.

Pro Tip: It is crucial for you to make clear what exactly your hiring process will look like. Offer resources and tips to help candidates. A great example is Google’s How We Hire,
a transparent and detailed look into their recruiting process.

3. Improve your career site

According to research, 89% of job seekers, your career site is the most visited recruiting asset you have, so ensuring candidates can easily find the information they need is essential to a great experience.

career-site

Pro Tip: There are many things you can do to improve and optimize your career site. We prepared a detailed step by step guide to help you get more job applicants from your career site.

4. Enable easy application process

According to research, 60 percent of job seekers quit in the middle of filling out online job applications because of their length or complexity.

candidate-experience-application-form

Pro Tip: Evaluate your application process and do everything you can to make it shorter in time and more simple. Consider asking only what you really need from people at this first point of contact.

5. Respect candidates’ time


According to LinkedIn’s survey, it generally takes 2 to 3 months for candidates to move from application to hire. This is quite problematic, because top talent stays on market only for 10 days.

Pro Tip: What constitutes as a timely response by employers? This a recurring theme across the recruitment experience. Most of the candidates  say that 3 to 5 business days is an acceptable time frame.

6. Communicate, communicate, communicate

Research shows that the No.1 frustration during the overall job search is the lack of response from employers. 81% of candidates that the one main thing that would greatly improve their overall candidate experience is employers continuously communicating status updates to them.

Pro Tip: Create email campaigns that will keep your candidates interested and engaged. Set up personalized campaigns based on different stages of recruiting and hiring process.  With our TalentLfyt Engage, you can create your own email templates, or use existing ones to save time.

7. Become an interview guru

The interview is a pivotal point in the candidate’s’ job search journey. According to LinkedIn research, 83% of talent say a negative interview experience can change their mind about a role or company they once liked.

Here’s our guide on which questions to ask job candidates.

Pro Tip: Keep your interview period short, offer candidates a chance to learn about the role and your company culture. A great way to that is to show off your workplace. A simple walk around your office after interview will give candidates a glimpse into your culture.

8. Give and ask for feedback

Feedback helps candidates improve as professionals, and they are very well aware of that.  According to LinkedIn hiring statistics, 94% of talent wants to receive interview feedback.

Pro Tip: Make sure to provide feedback for candidates that you didn’t hire. If the feedback you offer to rejected candidates is constructive, they will be 4 times more likely to consider your company for a future opportunity.

9. Maintain candidate relationship

Despite popular belief, a candidate’s experience doesn’t end when you decide not to hire them.
So called silver medalist are candidates that don’t make the cut for this position, but may be a perfect fit for some other future job openings.

Pro Tip: So how can you keep your silver medalists interested and engaged? Connect with them on LinkedIn and your company’s social media profiles. Add them to your recruiting email campaigns. Organize talent networking events and invite candidates from your talent pool.

10. Create a great recruitment content

Inbound recruiting creates a remarkable candidate experience through employer branding content and helps companies build relationships with top talent.

Pro tip: Create appealing employee testimonials and stories, shoot attractive company videos and provide interview and career advancement tips to get potential candidates interested in working at your company.

7 Tools That Will Help You Start a Home-Based Business

The traditional method used to start a business was to rent an office space and get down to work. However, the overhead associated with supporting an office right from the start was challenging and even detrimental in many cases.

The good news is that technology has evolved over the years to make it much more functional and practical to run a home-based business and even to grow your business substantially in a cost-effective way. As wonderful as running a home-based business can be, keep in mind that there are still obstacles that you will need to face and overcome.

Here are several effective tools that can help you better manage and grow your home-based business.

Basecamp

Whether you want to keep yourself focused on relevant tasks for practical efficiency or you are trying to manage a remote team in the most time-efficient way possible, Basecamp can help.

This app is an excellent resource for planning and scheduling, organization, accountability and more. You may never have to worry about meetings taking too much time or missing deadlines when you and your team maximize the benefits that Basecamp can provide.

Google Hangouts

As soon as you add your first remote employee to your team, you need to find an effective way to communicate. Google Hangouts gives you text and voice communications in one platform. There is even a video communication feature.

You can use it on your desktop and mobile devices seamlessly so that you never miss important communications with your remote team. Logs of conversations are also maintained to help everyone remain accountable. Because this is a free tool that you can start using immediately, it is ideal for small businesses that have two or more workers.

Freshbooks

Small business owners can spend an incredible amount of time on financial management and accounting tasks. However, this is an area that you need to excel at if you want to properly manage your money, budget for growth and more.

Freshbooks is a user-friendly application that has robust capabilities. It’s a perfect choice for managing your home-based business’ finances. It has easy functions for invoicing, tracking payments, creating reports and more. Because it is designed for small business operations, you may find that it has more applicable features that are relevant to your specific situation.

Wagepoint

Processing payroll each week can be time-consuming and stressful. This is a task that needs to be completed within a specified amount of time, and you can’t afford to make costly mistakes.

Wagepoint is designed to help small business owners simplify this task in an affordable way. It also ensures compliance with all relevant government agencies and can help you to process tax forms and more. Employees can even access their own compensation information to save you additional time when questions arise.

Close.io

Sales is a critical component to most small businesses. You understandably need to track leads and follow up with all potential customers in a timely manner, but you also need to close deals.

Close.io is a CRM tool that is designed specifically for small businesses like yours. You can manage conversations and email messages so that you never drop the ball. You can also set reminders, create reports and more in one convenient and streamlined platform. With applications available for multiple users, you can easily track the efforts of your growing sales team as well.

CoSchedule

Effective marketing for your small business requires you to create and execute a detailed, robust marketing plan in a timely manner. With CoSchedule all aspects of communications about your marketing plan can be stored in one convenient location. You can create marketing materials within this platform, manage your marketing team and create an on-going marketing calendar so that you never miss a beat.

Remember that timely delivery of marketing content is critical to generating superior results. Because this is a collaborate solution, your entire team will stay organized and aligned.

Groove

Customer service is essential for your customer satisfaction rating, loyalty, future sales, brand reputation and more. Groove helps you to streamline many aspects of your customer service activities.

For example, through this platform, your agents can create tickets based on phone calls, social media posts, email and more. You can track the tickets, analyze them and ensure that everything is tended to in a timely manner. This is an excellent tool that can help you and your team to stay on track so that nothing slips through the cracks.

Final Thoughts

Handling all aspects of your business operations properly and efficiently requires considerable effort, but you do not need to handle tasks manually. Technology is now available that can streamline and simplify many aspects of your operations from day one. Regardless of whether you have a one-man shop or a growing small business with several employees, these exceptional tools are wonderful resources that you can begin implementing right away.

Retail Giants Are Shifting America’s Economy, Meet the Recruiting Tactics Shaping Their Impact

touring-large-warehouse

Retail giants are using automation to get rid of jobs!

Headlines like this sell magazines and newspapers, but they’re incredibly misleading. Companies like Amazon and Wal-Mart are creating so many jobs in smaller towns all over the United States. The Bureau of Labor Statistics states that the number of warehouse and storage-sector jobs had risen roughly 3.9% year-over-year, to a preliminary count of 948,500. Recent stories from various cities have chambers of commerce vying for the chance to become the location of the next warehouse.

In fact, warehouse jobs pay about 31% more than retail jobs in the same county, and are more likely to hire black and Hispanic workers, according to the Progressive Policy Institute.

Far from decimating the workforce in small towns and semi-rural locations, Amazon, Staples and their counterparts employ 1.2 million workers in warehouses and other establishments. From 2010 to 2016, employment grew by 372,000 additional workers, a 48% increase. Compare that to all private industries’ cumulative 12% during the same time period.

Anyone who works in high-volume recruiting or medical staffing knows it is not easy to find hordes of qualified workers to support an economic shift. Job boards changed the game for many in recruiting–not to mention job seekers–in the late 1990s. Despite the onset of mass aggregation and performance-based job advertising, the job advertising business remains mostly unchanged. However, we are currently seeing a shift in recruiting once more, spurred in part by these retail behemoths. Leading companies are taking a holistic look at recruiting and developing recruitment marketing strategies that use multiple tactics, some old some new, to surround job seekers with their message as well as spur them to engage.

What sorts of tactics are becoming part of the recruiting mix to help companies hire better and faster? Companies in the space are stepping up to the challenge of finding innovative ways to attract and retain workers at companies like Amazon.

What unique hurdles do warehouse and fulfillment recruiters face?

First, let’s address the unique challenges that face recruiters when a new warehouse opens in a city. While the effects on the location and the workers themselves are often discussed in the news, we rarely hear about how talent acquisition pros work to staff these locations where the population levels and supporting services may be non-existent. Issues like:

  • Poor or no public transportation. While white collar companies like Google often bus in workers who don’t want to deal with a commute, it’s rare for non-white collar workers to be extended anything similar.
  • Low-income population. Retailers often rely on pay alone to attract workers, but when a competitor also raises wages, they may face turnover issues.
  • Unwilling workforce. Many states’ minimum wages do not cover living expenses in addition to child care, transportation and other considerations a low-income population may have to factor in when looking for a new job.
  • Competing for a smaller pool of candidates. Fulfillment centers are often built in rural areas where land is cheap, but there are not enough available or interested job seekers to fill the positions.
  • Geographic requirements don’t always line up with the population
  • More difficult than typical retail work. Working in a warehouse tends to be more labor-intensive than customer-facing roles, which can make retail jobs appealing.
  • Lack of brand. Warehouse roles can be the toughest to fill. Often, those opportunities typically aren’t top of mind for job seekers.

Recruiters and HR Pros are not only fighting the above frustrations, but they’re also fighting record low unemployment:

The same group of [retailers] that were fighting over people last year will be fighting over people this year. And there are a few less people to fight over and a few more positions to fill,” said Steve Osburn, a director at the Kurt Salmon consulting firm who specializes in the supply chain.

What tools are today’s recruiters using to combat this conflation of events?

Better Pay: Amazon pays anywhere between the state minimum wage and Amazon’s widely touted $14. According to PayScale, the average U.S. warehouse worker earns $12.62 per hour, or about $28,000 annually. While the compensation may appear low relative to occupations nationally, they are more competitive than wages typically earned by occupations like cashiers and cooks at about $10 an hour, according to Brookings Institute. While Wal-Mart often finds itself behind the 8-ball in wage discussions, many workers report they receive similar pay at its warehouses.

Benefits You Don’t See Everyday (At least not at this skill level). While these jobs are most certainly a harbinger of the future, many of the jobs require the same level of education and skill as cashiers or cooks, meaning the talent pool can be as large as the population in many cases. Amazon, Wal-Mart and Staples offer benefits many of those (often hourly) jobs can’t like medical benefits, life insurance, frequent breaks and 401k plans. But the benefits these companies should offer are things like emergency child care, flexible work schedules and the potential for bonuses. Candidates who take warehouse jobs (depending on location) may speak little English, come from many different cultures, and could struggle to manage multiple jobs, family duties and transportation or stability issues that can affect attendance and tardiness.

Unique Approaches & Recruitment Challenges: When you’re new in town and chances are some bad press preceded your arrival, how do you staff up in a hurry? For many recruiters, this is where big data really shines in identifying the right people to reach out to. While much has been made of resume lines and fairs, for most warehouse jobs you can apply online.

Going beyond standard job postings: Some recruiters are also using SMS messaging to move candidates through the process even faster. This speaks to candidates for hard-to-fill positions because it gives them immediate interest by the employer. Candidates don’t want to fall into a black hole process where communication from the company is sparse and not very promising. Text recruit services gives candidates security in reliable job opportunities. Automated responses and scheduling make this kind of high-volume recruiting much simpler. With a population group that may not even have a resume or a home computer, this type of quick and painless “interview” is preferred. It’s also simpler for the recruiter, who can answer many of the questions posed with automated scripts or in other languages.

Advantages of Mobile First Recruiting

Mobile-first recruiting combines SMS and Text messaging, retargeting, and career site optimization to create an experience that is better on mobile. Recognizing that even Google is putting more weight behind mobile-optimized content and more people in the job seeking public have their phones at all times, mobile-first recruiting seeks to pique candidates’ interest where they are.

  • Recruiters can quickly and easily send out new information like hiring bonuses.
  • In a competitive landscape, hiring companies can inform applicants of benefits and retarget those who might be interested in them.
  • Organizations can reach those who may not desire the arduous process of a complex ATS.
  • Text messaging a candidate is 8x more effective than email.
  • Automation allows for a faster process and pre-populated answers in ANY language, allowing recruiters to reach a more diverse population than ever before.
  • In an SMS application process, a resume is often not even necessary, making the mobile-first recruiting a boon for jobs with a low barrier of entry.

Referral Programs: Since many of the candidates who might apply to a warehouse opening may not have a resume, smart recruiters are focusing on referrals from current (even new) hires. Using religious houses and community groups to find even more workers is another tactic. Even neighborhoods are used to spread the word about the benefits of working at these warehouses. Referral bonuses are often used. Retargeting on mobile or using SMS to attract those who may not have completed the entire application or “interview” can seal the deal in areas where there are many competing warehouses and fulfillment centers.

Incentives: Going beyond cash is another tactic when it comes to incentivizing workers. From discounts on the retailer’s products, to free ESL classes and after-parties during particularly difficult shifts, the incentives heat up during a warehouse initial hiring spate and again during seasonal upswings, like Thanksgiving and Christmas. Other incentives includes shift selection and optional weekend shifts.

Create a Recruitment Marketing Campaign to Target Warehouse Workers

A Step-By-Step Guide

Gather your materials. The job shifts you need filled, specific benefits for the positions, any licenses a candidate might need (forklift for example) and any compensation numbers (including hourly pay, overtime pay, referral bonuses and seasonal bonuses.)

Look at your superstars. Referrals are crucial in the warehouse business for a reason. If you have warehouse rockstars, you need to find the thread that connects them. Pay attention to their work values and ask them what benefits or monetary compensation attracted them to the job. The answers may range from tuition benefits to the optional third-shift. Add their answers to your materials pile.

Build your job ad 3 ways: Of course you’ll need a description to do this, but you also want to make your ad compelling, point out the benefits of not having a traditional desk job or point out how your warehouse offers benefits others don’t. One warehouse had air conditioning and it made them more desirable than nearby warehouses that did not.

Job Advertisement: This will go on your career site, job boards, get picked up by aggregators and generally be a candidate’s window into what it’s like to work for your company, so make it good. Include details, benefits, options and NEXT STEPS. Especially important are what the candidate will need to bring to the in-person interview or what they will need to send in beforehand.

Headlines: These will go where the entire ad can’t. Think banner ads, mobile advertisement on social networks. You’ll need to capture the essence of the job and very likely low barrier of entry and salary in this short area.

FAQs: Figure out the questions people often ask about the jobs and then answer them for each role. These will come in handy for recruitment communication.

Please note: You may need to translate these, which is why it’s recommended to create them all at once. While it may take a few extra days initially, it will save time when you start a multi-channel recruitment campaign.

Figure out your channel strategy: Recruitment marketing today is a huge field of choices and it can get a little overwhelming. From job boards to billboards, there are a multitude of ways to get your message across. Here are the ones that work best with warehouse positions, particularly high-volume recruiting when opening a facility.

Email campaigns: Your jobs ads go into email alerts right alongside your competitors’ jobs. So tell your own story! This is where the advertisements are valuable. Create a campaign that focuses on benefits, follow up with compensation, inform candidates of upcoming hiring events and more. Many job boards offer custom email campaigns that align with your total recruitment marketing strategy.

SMS text blasts: Reach people where they are in a way that is easy to engage. Auto-responses allow you to start to develop a relationship and answer any questions. Remember those FAQs? Use them to build auto responses and save time. Recruit across the language barrier by offering language support. Send people to a hiring event and ensure they’re equipped with the tools they need to succeed there by giving them prompts and reminders.

Try retargeting: Did you know mobile has now eclipsed the desktop computer for browsing? It has. Time to follow your top candidates around the web and be top of mind during their job search. Remind them of upcoming hiring milestones or openings, referral bonuses and your top pay and benefits while they surf the web on their phone. This is pretty new in recruiting but wildly effective. All a candidate has to do is click on your job ad or visit your site and boom, you’re retargeting them. Since this is far from mainstream, it’s not something everyone is doing, but Nexxt is!

Boost your job ads, recruitment brand and your applies with targeted SMS recruiting and email marketing. Nexxt will help you build a custom campaign, backed with your brand, your message, and your goals in mind. In other words, it’s your arrow, Nexxt takes care of the aim. Start hiring with Nexxt!  

5 Challenges of Doing Business Globally

A lot of people are eager to start an international business, without actually realizing all the challenges that this course of action entails. All they focus on are the positive sides like expanding to new markets, an access to a greater talent pool and prospects of future, even greater, expansion. Still, things are not nearly as easy as they may appear at first and here are a couple of downsides you might encounter.

The issue with company structure

In most English-speaking countries like the United States, Canada, the United Kingdom and Australia, businesses are classified as a sole entrepreneurship, a partnership or a limited liability corporation. Needless to say, this affects how the company is registered but even more importantly, how it pays taxes. The problem with this issue lies in the fact that the target market you are attempting to approach may not have the same standard structures, which might cause a lot of problems.

Aside from this, your company needs to prepare its international structure. This entails making decisions on whether you run your company from a single headquarters or do you have autonomous offices and representatives all over the place. Needless to say, this also depends on how much autonomy you are willing to hand over to these overseas branches.

Cultural differences

Another thing you need to take into consideration is how cultural differences will affect your brand. For instance, opening a Hooters Bar and Grill branch in Saudi Arabia is definitely not a good idea. Still, not every such consideration is as straightforward as this comparison. Sometimes, these differences will be much subtler, yet this doesn’t make them any less devastating for your brand. For this reason alone, it might be a much better idea to use a platform such as 2 Easy in order to get some invaluable local contacts at your target location. These B2B connections might help you out establish your international office with much greater efficiency.

Local laws and regulations

Next, you should look out for local laws and regulations and the ways in which they match or differ from those from your country of origin. Sometimes, your business structure or model will be tailored to fit the needs of a local market, which could make your transition to an offshore location slightly more difficult. Sure, dealing with two separate locations can be hard but things will only escalate once you start taking more and more countries into your calculation. This is definitely something you have to think about in due time.

International pricing

One of the most controversial issues surrounding the global market is the fact that the price of the same product/service may differ depending on the target location. Now, different parts of the world have different average purchasing power, which means that stamping a single universal price on your product may restrict you in more ways than you can imagine. On the one hand, it could make your product too expensive for the local market or it could significantly lower the bar for your expected profit. The method of guiding your pricing strategy is probably going by the Big Mac Index when comparing the purchasing powers of different regions.

Issues surrounding marketing

Finally, due to the above-mentioned cultural differences, you might have a hard time using your marketing campaign all over the globe. Seeing as how the situation in the world is quite sensitive from the cultural standpoint, even some of the most innocent trends might appear quite offensive in some regions. Because of this, it is usually far better to come up with different variations for one and the same campaign than to try going with a one-size-fits-all solution. On the other hand, this might considerably increase your expenses.

Conclusion

At the end of the day, starting a global brand is far from easy, seeing as how the number of variables you have to keep an eye on drastically increases. Instead of having to worry about the legal issues of your home region, you now have to do this several times over. Furthermore, any reform you decide to enact suddenly gets layers and layers of potential complications. Nonetheless, for all those who don’t fear the challenge of overcoming these international barriers, potential rewards are always more than worth it.

Why Should Small Businesses Focus on Liquidity Management?

Making a profit is certainly the main objective of every business out there, but one of the more important factors people tend to forget about is liquidity.

Lack of profits can kill your business in just a few months. However, lack of liquidity, can destroy your whole organization basically in a heartbeat.

Actually, according to the best-selling author and business adviser, David Mellor, lack of liquidity is the second biggest reason why small businesses fail in the United States.

What is liquidity actually?

If you’re new to all of this “business lingo” you’re probably wondering what liquidity even is. In essence, it’s a term used to describe an asset categorized by how fast you can trade it on the open market, without affecting its value.

For instance, cash is a liquid asset. You can trade it for other goods on the market without its price being changed in the process. When you want to buy something – a car, a new home or office supplies – cash will certainly do the trick.

Cash aside, even if you have something valuable, like vintage furniture, jewelry, etc. you technically still have liquidity. However, since the price of those assets varies – some people lower the price to sell their assets quicker, for example – they are relatively liquid.

When it comes to your company, the most important thing is that you have enough assets to pay your debts on time. In most cases, this depends on how much cash you have available, in comparison to the liabilities of your company.

Why is it so important?

As we indicated before, on the surface level, it’s all about the profit. But your enormous profit margin doesn’t actually mean too much if you’re not able to pay off your current debts and use the rest of your funds to invest in your business and keep it afloat.

Having cash at your disposal gives you the freedom to make an investment and expand your business, when the right opportunity comes up. And no matter how unlikely it seems, you never know when a financial crisis may occur, so having some cash stashed away is almost a type of insurance.

In order to keep up with your liquidity, you need to track your liquidity ratio. Here are three most commonly tracked ratios among small business owners:

  • Current ratio

More commonly known as “working capital ratio” this ratio measures your liquidity by comparing assets to liabilities. If your company has a current ratio of 2:1, most financial experts would agree that you have a “financially healthy” company on your hands.  

  • Quick ratio

This ratio is used to evaluate your organization’s capacity to fulfill its promises. Some companies track quick ratio on a monthly basis, in order to identify negative trends and make some adjustments that will help them satisfy debt requirements in the future.

  • Operating cash flow ratio

If you want to measure operating cash flow ratio, you just need to add up all the cash taken from your operations and divide that value by your current liabilities. This ratio is used to assess whether your current cash flow is sufficient to cover your debts.

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How to increase your liquidity?

  • Finance through factoring

In this case, a “factor” is actually a financing firm that offers to pay out your accounts for a price. Essentially, these companies pay up front what your customer is due and take a percentage. If you have to pay a few invoices and you need the cash right away, this is a rather convenient option.

  • Taking a personal loan

This is perhaps the simplest way of increasing cash flow through your company. Of course, you have to be careful with loans and wait for the right moment to take it. In most cases, taking personal cash loans is the smartest option if you want to correct the liquidity of your business instantly.

  • Minimizing liabilities

If you don’t want to increase your cash flow, you can take the other route, and reduce the amount of money coming out of your organization. Some people simply have too much inventory lying around the office, and this can decrease your liquidity drastically. Therefore, you need to have a good strategy to make sure that your inventory is always ready to be sent out and sold.

Don’t get too comfy if your profits go up

When you’re dealing with liquidity, you have to be calm and calculated at all times. Simply put, you can’t let yourself get distracted by other, less important aspects of running a business.

Moreover, we should also point out that you can’t get too comfortable when your profits start going up. On the contrary, you always have to be aware of how much money you and your company earned is at your disposal.

Without knowing that, your business venture might fail without any particular warning signs when you and your partners expect it the least.

Diversity and Inclusion: The right formula

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Do you know Gloria Tang Tsz-kei?

She’s a pretty successful woman; just 25 years old, an accomplished singer-songwriter, piano grade 8 by age thirteen and 23 million followers on Weibo today.

Her stage name is G.E.M. for “Get Everybody Moving”. That’s a pretty cool motto!

Interestingly, GEM is also an acronym for Gender Empowerment Measure, an index created by UNDP (United Nations Development Programme) which aims to measure gender inequality based on economic income, participation in high-paying positions and level of access to professional positions.

It looks like Gloria’s motto was made for today’s subject. Let’s use it and see how some features of HR solutions can support women’s empowerment in your company.  You may not be concerned because you are part of a company that is already doing so, or just this subject is not a priority. Before you leave, please have a quick look at this article from Prabha Kannan. It’s very refreshing.

Get
The first step aims at getting information on your talent: what is their background in terms of education and work experience, what they are good at, what they certifications do they possess, what languages they speak. This allows you to know your workforce better and use it more efficiently.

Here are a few tools available in HR solutions that help gather this information:

Talent profile – the subject of talent management really snowballed in the early 2000s, mostly associated with competency-based management.  Today, a talent profile is the central repository to get employee talent information and validate the match against their current or future job, do some comparisons and search for specific capabilities. Initially populated from application data, it keeps getting enriched by the employee, their manager, the HR department or after completing an activity (learning, achieved objective, promotion, volunteering, coaching).

Performance review – The performance review is intended to be a fair and balanced assessment of an employee’s performance. It is conducted most often through an annual process with extra steps included (objective setting method, different steps, mid-year review) and will result in an evaluation of all employees.

Personal branding – with the boom of social media tools such as Facebook or LinkedIn, employees started to voluntarily publish information about themselves and their network on the internet. As an extension to the Talent Profile, we see innovative HR solutions providers suggesting to reuse this information, with employee consent, to better identify “hidden” talent and take into account additional criteria such as social reputation, endorsement or influence.

Everybody
The first features we have been reviewing were mainly employee-manager-HR oriented. The next step to reduce further gender bias is to bring more people and more information into the process to make your decision even more objective and dilute any questionable individual decisions and operational considerations.

 

Here are a few tools available that help extend, enrich and retrieve information on your talent:

Feedback – getting feedback from peers, direct reports or matrix managers is not something new. It already was available with 360° performance reviews for instance. With instant feedback, you bring spontaneous and unsolicited content to the people appraisal and you extend the population that can acknowledge (or not) the employee’s behaviour, support and efficiency.

Engagement – with time, HR management’s target evolved from personal administration toward a system of engagement. We see many new dimensions being taken into account when assessing employees. It can be taking ownership of a volunteering program, publishing and sharing a video tutorial to help their peers, mentoring junior colleagues or participating in internal competitions or ideation projects. All of these activities are enriching the talent profile and the network of potential supporters.

Analytics – making the right decision implies that you have all information available to you. Good analytics will allow you to get KPIs, trends and insights into your talent but also to get into details. For instance, you need to be able to search on competencies and location to be able to identify the people with the required profile.

Moving
Some interesting indicators from the Global Entrepreneurship Monitor (another GEM!) in the Women’s Entrepreneurship 2016/2017 Report show that Total Entrepreneurial Activity (TEA) among women increased by 10%and the gender gap narrowed by 5% compare to a similar study in 2015 (a study made on 63 economies worldwide). Things are moving in a good direction and nobody could use the argument that women are just less interested in gaining more responsibilities and power in companies.

We have seen how to get talent data and extend it so that everybody can add their share in the decision process. Last step consists in transforming current processes and moving them toward this ultimate goal: women’s empowerment!

Compensation – the gender pay gap is pretty well known and lot of companies are already working on it. HR solutions provide compensation tools can be used to help with corrective actions. A simple way, through eligibility, is to define some specific salary re-alignments for underpaid employees. You can also force the bonus, grants, merit increases to be automatically calculated based on compa-ratio, performance results, goals achievement. By doing so, you remove any decisions based on gender. You can also give more freedom to the manager to make their own proposals while using warnings or alerts to detect and raise inconsistencies.

Talent Review/Succession Planning – both processes go hand in hand and help identifying high potential & hidden talent, assuring your best talent is in line for future critical roles, identifying candidates for key jobs, developing multiple career paths. This process is typically done by a panel of executives all sitting in the same room, having access to all relevant data to take the best decision. The tools can support more aggressive policy such as filtering your population to only work on female talent when too low a proportion of them are in key roles.

Learning – another helpful process is learning. You can for instance manage a talent pool of your future women leaders and assign specific learning programs or create a specific learning community. The advantage of communities is that you feed learners with appropriate learning opportunities and promote conversation, collaboration, sharing and healthy competition.

Nearly forgot! In French, you pronounce GEM as “J’aime” meaning “I like”. That’s a fortunate coincidence both for this subject and to guide you toward your next action after reading this article.

Author: Nicolas Bouché – You can find more information on LinkedIn. Views are his own.

2018 Recruiting Trends: 9 Recruiting Strategies to Implement in 2018

2018 Recruiting Trends: 9 Recruiting Strategies to Implement in 2018

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This list of 2018 recruiting trends should be your guide for improving your recruiting strategy.

Are you ready to implement these new recruiting trends or will you be left behind?

We live in a candidate driven market

The way we recruit has changed. Compared to just a few years ago, candidates now have far more power during the job search.

According to research and every recruiter and HR professional everyday work experience, current job market is 90% candidate driven. That means you don’t pick talent anymore. Talent picks you!

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That’s why there is a major shift going on in recruiting paradigm. The focus is now on candidates, who are being treated like customers.

Recruiting trend no. 1: Recruitment marketing

What is recruitment marketing?

Recruitment marketing strategy is based on implementation of marketing tactics in recruiting.

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The importance of recruitment marketing

Main goal of recruitment marketing is to follow the latest trends in the market and offer solutions to the companies that best overcome these new challenges.

Recruiting trend #2: Inbound recruiting

What is inbound recruiting?

Inbound recruiting is a recruitment marketing strategy where you proactively and continually attract candidates with the goal to make them choose you as their next employer.

 

The importance of inbound recruiting

If you are looking for a long-term solution to advance your recruiting and hiring strategy, inbound recruiting is the way to go.

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Recruiting trend no #3: Employer branding

What is employer brand?

Employer brand is the term commonly used to describe an organization’s reputation and popularity as an employer, and its employee value proposition.

The importance of employer branding

Research by LinkedIn has proven that more than 75% of job seekers research about company’s reputation and employer brand before applying.

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Recruiting trend #4: Candidate experience

What is candidate experience?

Candidate experience” is current, past and potential future candidates’ overall perception of your company’s recruiting process.

The importance of candidate experience

Candidates who had a positive candidate experience in your recruiting process will more likely accept your job offer, reapply in future and refer others to your company.

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Recruiting trend #5: Talent pools

What is a talent pool?
Talent pool refers to a place or database where recruiters and HR Managers keep all of their top job candidates.

The importance of talent pool

Imagine if every time you had a job opening, you had a pool of talent from which you can just pick the best one! Sounds great, right?

Recruiting trend #6: Candidate relationship management

What is candidate relationship management?

Candidate relationship management (CRM) is a method for managing and improving relationships with current and potential future job candidates.

The importance of candidate relationship management?

This relatively new method in recruiting was introduced to the world of talent acquisition as a solution to one of the biggest challenges in the HR industry – attracting talent.

Recruiting trend #7: Social recruiting

What is social recruiting?

Social recruiting is using social media channels (such as Facebook, Twitter, LinkedIn etc.) for recruiting.

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The importance of social recruiting

You can use social media networks to proactively search for potential candidates, build relationship with them and encourage them to apply to your vacant job positions.

Top recruiting trend #8: Recruitment automation tools

What is recruitment automation tools?

Recruitment automation tools are software that use new technology to automate recruiting process.

The importance of recruitment automation tools

These new all in one tools offer help in finding, attracting, engaging, nurturing and converting candidates into applicants.

Many recruiter have agreed that having an ATS improves their quality of hire.

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Recruiting trend # 9: GDPR

What is GDPR?

General Data Protection Regulation (GDPR) is a new piece of EU legislation that will replace the current Data Protection Act (DPA) with the goal to unify data regulations within the EU.

The importance of GDPR

GDPR will be introduced on 25th May 2018 and it will completely change the way recruiting operates in 2018.